What Happened?

A number of stocks jumped in the afternoon session after markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward. 

However, Trump was quick to note that China was not part of the pause. Instead, he prepared to raise tariffs on Chinese goods to 125% after China announced retaliatory tariffs on US imports. This tough stance on China stood in sharp contrast to the softer tone toward others. In a week marked by growing uncertainty, this news eased some of the pressure. The questions remain whether we are out of the woods and can sustain the rally or not.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, following stocks were impacted:

• Hardware & Infrastructure company Super Micro (NASDAQ:SMCI) jumped 14.9%. Is now the time to buy Super Micro? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Dell (NYSE:DELL) jumped 15.4%. Is now the time to buy Dell? Access our full analysis report here, it’s free.
• IT Services & Consulting company IBM (NYSE:IBM) jumped 6%. Is now the time to buy IBM? Access our full analysis report here, it’s free.
• Enterprise Networking company Cisco (NASDAQ:CSCO) jumped 7.5%. Is now the time to buy Cisco? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Hewlett Packard Enterprise (NYSE:HPE) jumped 14.7%. Is now the time to buy Hewlett Packard Enterprise? Access our full analysis report here, it’s free.

Zooming In On Dell (DELL)

Dell’s shares are very volatile and have had 27 moves greater than 5% over the last year. But moves this big are rare even for Dell and indicate this news significantly impacted the market’s perception of the business.

Dell is down 27.1% since the beginning of the year, and at $84.99 per share, it is trading 52.6% below its 52-week high of $179.21 from May 2024. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $2,043.

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